Roberts Insurance Group Blog
If your business has had workers compensation insurance in the past, you're probably familiar with the end-of-term audit that comes with it. For those Georgia business owners who aren't familiar, workers compensation premiums have a required audit attached to it.
Workers Comp Premium Audit Explained:
Essentially, when you start a workers comp policy, the premium is estimated based off of your company's estimated premiums and associated job roles. More or less, what you tell your agent or broker. At the end of the policy period, the insurance company will audit your payroll to ensure that you were charged the appropriate premium. If you overstated your payroll before the policy period, the insurance company will refund you the over payment. If you understated your payroll, you will get hit with an additional premium invoice for the underpayment.
So How Can Pay As You Go Workers Comp Billing Help?
The number one reason to take advantage of the Pay As Yo Go option is to avoid getting hit with a large additional premium bill. We see this all of the time with new businesses and contractors who underestimate their payroll or use of subcontractors at the beginning of a term. The increase in premium is usually hefty- often several thousand dollars depending on your business. With the Pay As You Go option, this is totally avoided because you report your payroll and your premium is adjusted in real time. Whether you pay your employees monthly, bi-weekly, or monthly, the Pay As You Go workers comp billing structure will accommodate changes to your payroll and you'll avoid getting hit with a big bill.
As I was writing this, I received an email from a client that we switched to Pay As You Go mid-term. She said, "I'm SO glad we made this change because I owed a good bit in back pay for workers comp so I certainly would've received another large bill if we kept going as we were".
What Carriers Offer This Option?
Pay As You Go is still a new concept in the workers compensation world. However, most of the larger workers comp insurers have adopted this as an option. If you're interested in taking advantage of this for your business, you need to communicate this to your broker and have them place you with a company that offers it.
If you don't have access to a carrier that offers this, then contact us today at 678-250-8133 and we'll get you and your business taken care of!
The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.